global Tax 2024 Filing Season Begins January 29th, IRS Confirms January 12, 2024 The IRS will begin accepting tax returns on January 29th…are you prepared? The IRS has confirmed it will begin accepting 2023 income tax returns on January 29, 2024. Here’s what you need to know for this upcoming tax season. What is the tax deadline this year? The deadline to file 2023 personal income tax returns and pay tax owed is Tuesday, April 15, 2024. The IRS expects more than 128.7 million individual tax returns to be filed. If you cannot file your return by April 15th, you may apply for an extension to file until October 15th, but this is not an extension of time to pay your tax. Taxes owed are still due by April 15th. Maine and Massachusetts residents have until April 17th due to Emancipation Day and Patriots’ Day. The January 29th start date will allow the IRS proper time to conduct additional programming and testing to ensure that the systems will run smoothly throughout filing season. Are there any benefits to filing right when tax season officially begins? There are a few benefits to preparing your returns earlier rather than later—namely blocking identity theft more successfully by filing before a fraudster can. The other advantage is that refunds tend to be issued more quickly before the volume picks up later in March and April. E-filing vs. paper filing The IRS is encouraging taxpayers to file electronically with the direct deposit option. Paper returns are subject to longer processing times. What rates do I use for filing this year?Tax RateSingleMarried filing jointlyMarried filing separatelyHead of household10%$0 to $11,000$0 to $22,000$0 to $11,000$0 to $15,70012%$11,001 to $44,725$22,001 to $89,450$11,001 to $44,725$15,701 to $59,85022%$44,726 to $95,375$89,451 to $190,750$44,726 to $95,375$59,851 to $95,35024%$95,376 to $182,100$190,751 to $364,200$95,376 to $182,100$95,351 to $182,10032%$182,101 to $231,250$364,201 to $462,500$182,101 to $231,250$182,101 to $231,25035%$231,251 to $578,125$462,501 to $693,750$231,251 to $346,875$231,251 to $578,10037%$578,126 or more$693,751 or more$346,876 or more$578,101 or more What’s new this filing season? 1099-K reporting threshold delayed- Do you receive payments from PayPal, Venmo, eBay, etc? Starting in 2022, the threshold was set to decrease to $600, meaning if you received more than $600 per year (no minimum transaction requirement) through third party peer-to-peer payment apps, you would have received the Form 1099-K reporting those payments and the IRS would have received a copy to enable them to match them to what is reported on your tax return. In December 2022, the IRS stated that 2022 would be a “transition year” for this new requirement. As of November 21, 2023, 2023 will be treated as another transition year for the requirement. To give taxpayers more time to get used to the change, the IRS is planning a phase-in threshold for tax year 2024 of $5,000. They are still working to clarify the other elements of the reporting requirements including how best to focus on taxable transactions.Energy tax credits- Did you buy a car in 2023? You may qualify for electric vehicle tax credits. You may qualify for a tax credit on your 1040 when you buy an EV. The credit can be up to $7,500 but is subject to a phase-out based on the number of vehicles sold by the manufacturer. Check out our blog, How You can Benefit from the Electric Vehicle Tax Credit for more information on the requirements. There are also tax credits available for a portion of qualifying energy home improvements. To expedite refunds and prevent delays, here are some key reminders: Visit IRS.gov/account to access your personal tax account information Make estimated payments by January 16, 2024 Select your preferred direct deposit method (bank account, prepared debit card or through the mobile app) Questions? Contact us, we can help.
